Emissions trading

Emissions trading schemes allow policymakers to achieve environmental goals while minimizing social costs. Once a primarily theoretical tool, emissions trading has gained wide acceptance by regulators and industry officials and is now in use across the world. As it gains increasing recognition, governments and firms will need to understand how to structure and prepare for these schemes.

With our extensive experience in applying and developing emissions trading programs, CDM Africa can help. Understanding these markets will be crucial for firms wishing to succeed in the new business environment. CDM Africa’s understanding of market structure and design, regulatory incentives and the economic instruments relevant to the policies in question can form a key component of firm and industry strategies for dealing with new air emissions regulations. We can help firms analyze the marginal costs of emissions reductions, determine optimal allocation mechanisms, examine program design issues, assess market position as a buyer or seller and design trading strategies.